As a new study by Kaspersky, businesses disclose that they have been victims of a breach experience 40% fewer financial losses.
Kaspersky's report, "How Businesses Can Minimize the Cost of a Data Breach," reveals that there is a correlation between how a data breach and the overall financial losses an organization experiences following a cybersecurity incident.
Businesses that self-disclose a breachhave 40% fewer losses than those whose breach was revealed by the media.
Failure to inform the public about a data breach in a timely manner can make the consequences of a breach more severe, Kaspersky says.
The Kaspersky report, based on a global survey of more than 5,200 IT and cybersecurity professionals, shows that organizations that report the situation usually mitigate the damage.
The cost for small and medium-sized businesses that disclose a breach is estimated at $93,000, while for those that do not disclose, the damage reaches $155,000.
The same is true for large companies. Those that voluntarily inform their public about a breach suffered less financial loss (28%) than those whose incidents were leaked to the press.
The survey found that half (46%) of businesses disclose a breach. Additionally, 30% of organizations that had experienced a data breach chose not to disclose it. Nearly a quarter (24%) of companies tried to hide the incident but saw it eventually leak to the media.
While there have been few reported losses from businesses that managed to keep the incident under wraps, this approach is far from ideal. Such companies run the risk of losing even more if an incident is revealed to the public against their intentions.
Kaspersky senior marketing director Yana Shevchenkosays: “Proactive disclosure can help turn things around for a company and only contains the financial impact.”
“If customers know what happened firsthand, they are more likely to maintain their trust in the brand. The company can also give its customers recommendations on what to do next to keep their personal information protected.”
“The company can also tell its own side of the story by sharing reliable and accurate information with the media, rather than relying on third-party sources that may misrepresent the situation.”
